Interest-rate meddling had far-reaching harmful effects on the business cycle

Evidence

Austrian capital theory, as expounded by Eugen von Böhm- Bawerk, helped convince him that government meddling in interest rates had farreaching ancillary effects on the business cycle that could do grievous harm to the economy. And Mises’s critique of socialism and corresponding defense of the effi ciency of the market helped lead him to the conclusion that attempts to interfere with the price mechanism were almost always misguided. — Angus Burgin, The Great Persuasion, 62

Categorization

• XREF: This is Austrian business-cycle theory, the causal mechanism later deployed against Keynesian demand management; central to the reader’s interest in how MPS ideas connected to policy. — connects to: Tax evasion, austerity, and loose monetary policy mutually reinforce each other — Nick Srnicek, Platform Capitalism, 38; Capital-account liberalization creates surplus-deficit imbalances and boom-bust cycles — Natascha van der Zwan, Making Sense of Financialization, 34; Severe financial crises trigger a loss of trust in markets

Broader Connections

• Tax evasion, austerity, and loose monetary policy mutually reinforce each other #expands (0.75) — Nick Srnicek, Platform Capitalism, 38
• Capital-account liberalization creates surplus-deficit imbalances and boom-bust cycles #corroborates (0.72) — Natascha van der Zwan, Making Sense of Financialization, 34
• Severe financial crises trigger a loss of trust in markets #complicates (0.72)